Why Electric Bills Are Rising in 2026: What 37 Rate Cases Show
Last updated 2026-10-16
The average US household paid 18.31¢ per kilowatt-hour for electricity in Jul 2026, according to the Energy Information Administration's monthly survey. That is +4.9% compared with a year earlier, and +32.4% compared with five years earlier. For a home using 1,000 kWh a month, the five-year rise is the difference between roughly $138 and $183 on a monthly bill.
Most of that increase reaches bills through rate cases: formal requests that utilities file with their state commission. BillHike tracks 37 of them, read from the dockets, utility notices and SEC filings. Here is what they show.
What utilities say they need the money for
Across our summaries of the 37 cases, these reasons come up most often (a case can cite several):
- a higher return on equity for shareholders: 25 of 37 cases
- grid, infrastructure or reliability spending: 20 of 37 cases
- storm or wildfire costs: 10 of 37 cases
- customer or demand growth, including data centers: 7 of 37 cases
- inflation and higher operating costs: 6 of 37 cases
The return on equity is the profit rate a commission lets an investor-owned utility earn on the money it has invested in poles, wires and power plants. Utilities in our cases typically ask for 10% to 11%; commissions often settle closer to 9.4% to 9.8%. Every new substation or storm-hardened line goes into that invested base, which is why grid spending and the allowed return together drive most base-rate increases. Fuel and purchased power are usually passed through separately, so they can raise bills between rate cases too.
Utilities ask for about twice what they get
In the 13 decided cases we track, utilities asked for a median increase of 10.4% and commissions approved a median of 5.6%, about 47% of the request. Each pair below compares like with like: the approved figure is on the same basis as the request.
| Utility | Measured as | Asked | Approved | Share granted |
|---|---|---|---|---|
| NIPSCO (IN) | typical bill | 22% | 16.75% | 76% |
| Idaho Power (ID) | residential | 17.35% | 9.74% | 56% |
| Kentucky Utilities (KY) | residential | 13.55% | 6.54% | 48% |
| Con Edison (NY) | typical bill | 13.4% | 3.4% | 25% |
| Xcel Energy Minnesota (MN) | overall | 13.2% | 5.7% | 43% |
| Mon Power (WV) | residential | 13% | 5.6% | 43% |
| Evergy Kansas Central (KS) | typical bill | 10.36% | 6.97% | 67% |
| LG&E (KY) | residential | 10.12% | 4.73% | 47% |
| Xcel Energy Colorado (CO) | residential | 9.9% | 4.77% | 48% |
| Dominion Energy Virginia (VA) | typical bill | 9.8% | 7.5% | 77% |
| PPL Electric Utilities (PA) | typical bill | 6.98% | 3.23% | 46% |
| FPL (FL) | typical bill | 6.1% | 1.9% | 31% |
| Pepco Maryland (MD) | typical bill | 5.85% | 2.25% | 38% |
That gap is the reason public scrutiny matters. Commission staff, consumer advocates and large customers test every number in the filing, and many cases end in a settlement well below the request. It also means the headline number in a utility's announcement is rarely what lands on your bill.
23 increases still waiting for a decision
These cases are pending or have a settlement that the commission has not yet approved, soonest decision first:
| Utility | Asked | Status | Decision expected |
|---|---|---|---|
| Tucson Electric Power (AZ) | 13.7% | pending | Dec 2026 |
| Avista (WA) | 13.9% | pending | Dec 2026 |
| Wisconsin Public Service (WI) | 10.29% | pending | Dec 2026 |
| We Energies (WI) | 10.28% | pending | Dec 2026 |
| APS (AZ) | 13.99% | pending | Dec 2026 |
| Appalachian Power (VA) | 5.4% | pending | Jan 2027 |
| Puget Sound Energy (WA) | 16.75% | pending | Jan 2027 |
| Montana-Dakota Utilities (ND) | 18.9% | pending | Jan 2027 |
| BGE (MD) | 4% | pending | Jan 2027 |
| DTE Energy (MI) | 9.7% | pending | Feb 2027 |
| Rocky Mountain Power Wyoming (WY) | 8.5% | pending | Mar 2027 |
| UPPCO (MI) | 15.6% | pending | Mar 2027 |
| OG&E (OK) | 17.5% | pending | Mar 2027 |
| Pacific Power Oregon (OR) | 10.8% | pending | Mar 2027 |
| Consumers Energy (MI) | 9% | pending | Apr 2027 |
| JCP&L (NJ) | 8.8% | pending | May 2027 |
| Ameren Missouri (MO) | 10% | pending | May 2027 |
| PG&E (CA) | 5.2% | pending | May 2027 |
| Eversource Connecticut (CT) | 18% | pending | Jun 2027 |
| PSO (OK) | 15% | settlement filed | not scheduled |
| Duke Energy Carolinas (NC) | 15% | settlement filed | not scheduled |
| Duke Energy Progress (NC) | 18.5% | settlement filed | not scheduled |
| Xcel Energy New Mexico (NM) | 16.73% | settlement filed | not scheduled |
What a 10% increase means for you
At the US average price, a home using 1,000 kWh a month pays about $183 before fixed charges differ. A 10% rate increase adds about $18 a month, or $220 a year. Your own number depends on your utility's rate and how much you use; the bill calculator works it out for any utility we track.
What you can do
- Find your utility by ZIP code and see whether it has a case open.
- If it does, file a public comment before the commission decides. Comments go into the official record.
- Learn who sets your rates: co-ops and city utilities do not go through a commission rate case.
Sources
Prices: EIA-861M monthly sales and revenue (released 2026-09-24). Cases: the commission dockets, utility notices and filings linked on each rate case page, last checked 2026-10-16. See the methodology for how each figure is calculated.